BAKU, Azerbaijan, July 23. As of July 1, 34.4% of the bonds and other money market instruments held by the State Oil Fund of the Republic of Azerbaijan (SOFAZ) were rated AA, down 12 percentage points from the same period a year earlier, according to the Fund.
During the reporting period, SOFAZ increased the share of AAA-rated instruments in its fixed-income portfolio to 28%, up from 21.5% a year earlier.
The Fund also raised the share of A-rated instruments to 25.3% from 19.1%, while the share of non-investment-grade instruments increased to 0.8% from 0.4%.
At the same time, the share of BBB-rated instruments declined to 11.5% from 12.6% a year earlier.
As of the reporting date, the maturity profile of SOFAZ's bond and money market portfolio was as follows:
-
14.7% with maturities of up to one year, compared with 14.8% a year earlier.
-
30.1% with maturities of one to three years, up from 29.6%.
-
26.4% with maturities of three to five years, compared with 26.2%.
-
28.8% with maturities of more than five years, down from 29.4%.
As SOFAZ continues to diversify its investment portfolio, it is also expanding its participation in international investment platforms.
In an interview with Trend, Merlissa Trisno, Director of Funds and Capital Partnerships at the Indonesia Investment Authority (INA), highlighted SOFAZ's strategic role as one of the founding sovereign investors in the Galaxy Orientis China-ASEAN Investment Platform (CAIP).
"The State Oil Fund of the Republic of Azerbaijan plays an important role as one of the platform's founding sovereign investors. Its participation demonstrates the shared commitment of three sovereign wealth funds to support long-term investment and economic cooperation along one of the world's fastest-growing development corridors," Trisno said.
She said CAIP brings together the financial resources, institutional expertise and global networks of the China Investment Corporation (CIC), the Indonesia Investment Authority (INA) and SOFAZ to finance high-quality investment projects across the region.
"The platform aims to contribute to regional development by combining long-term capital, institutional expertise and global networks to support high-quality investment opportunities," she said.
Trisno added that the platform has secured approximately $520 million in initial funding and is targeting a total of $1 billion, with plans to attract additional institutional investors in the future.
"We believe the platform will, over time, provide a strong foundation for expanding economic and investment cooperation among Indonesia, China, ASEAN countries, Azerbaijan and other partners," the INA official said.
